FEDERAL GOVERNMENTBASELINE BUDGETING

Baseline
budgeting is an accounting procedure for creating a budget for future spending.
It assumes future budgets will equal the current budget plus any adjustments
for inflation and growth rates.

The Federal
Government uses baseline budgeting for establishing future funding requirements.
The more expansive and intrusive the government gets, the bigger the baseline budget is, and the more money the Federal Government needs to take from the private sector to fund itself.

The increasing cost of the Federal Government is an economic burden on the private sector economy. ﻿

Federal Government revenues are resources taken out of the private sector
free enterprise system to support government spending. A limited Government
that honors a balanced budget is a viable Government. A Government that refuses
to enact a budget and spends faster than it can print money and expects to use
that spending as baseline budgeting is irresponsible and an economic
danger to society.

Instead of reducing the size of government, politicians resort to creative ways to take more
money out of the private sector to make up for bad economic Government policies. This
increasing cost of big Government on the private sector suppresses your
realization of new money making ideas and ultimately reduces potential revenues to the Government..

The Federal
Government uses baseline budgeting for establishing future funding requirements
over a ten year projection. Twice a year the Congressional Budget office (CBO)
prepares a baseline budget projection of government revenues; government costs
and projected surplus or deficits.

This analysis is supposed to be designed as a reference
point for assessing possible future economic policy changes. The system cannot work when one party thinks that the way to solve the out of control Government deficit problem is to massively increase Government spending.

The baseline
budget basically refers to the current year's spending levels plus an automatic
three to eight percent funding increase authorized by "continuing
resolutions" referred to as baseline budgeting for every single agency
in government for the following year.

What is Sequestration?

This automatic baseline budget spending cut is called "sequestration."Sequestration is the fiscal policy procedure adopted by Congress in Nov of 2011 called the Budget Control Act of 2011 (BCA) as a means of withholding a marginal amount of the yearly baseline budget increase if Congress could not agree on ways to reduce the size of the Federal government's budget deficit.

Sequestration is a procedure that tries to cut back on some of the excessive spending and limit the out of control growth of the federal debt.

Because Congress could not agree on ways to cut the federal budget deficit, an "automatic" form of baseline budget spending cutbacks was introduced by the President and was agreed upon in congress as a condition for raising the Government debt limit.

The sequestration allowed the President to raise the debt limit by $2.1 trillion which is currently estimated to be sufficient only through early 2013. That equates to $2.1 trillion Government spending over and above Government revenues in just over one year. In other words, that is 2.1 trillion dollars borrowed in just over one year.

The
sequestration only imposes caps on Government discretionary programs in an attempt
to reign in government deficit spending by only $1.2 trillion over the next TEN years,
relative to the Government baseline spending of 2010.

Sequestration
was originally scheduled to take effect on Jan. 2, 2013. However, it was
delayed until March 1, 2013, by a deal struck on New Year's
Eve, called the American Taxpayer Relief Act of 2012.

Obama's Bald-Faced Lie on White House Sequester

Posted By: Thomas Mitchell

Posted By: yazchat

We create who we are in this life through a progression of decisions. We created the person that we are today from the decisions that we made in the past. We are creating the person that we will be tomorrow by the decisions that we make today. (Marvin L. Nelson)